Why is the crypto market up today?

The total crypto market capitalization is up 1.85% over the last 24 hours to rest at $2.77 trillion on Nov. 11. The overall trading volume has also jumped 75% on the day to $235 billion, reinforcing November’s bullish momentum.

Bitcoin (BTC), the largest cryptocurrency by market capitalization, has risen 2.8% over the last 24 hours to trade at $81,587, just below the $81,858 all-time high set during the early Asian trading hours on Nov. 11.

Related: $80K BTC price chases gold — 5 things to know in Bitcoin this week

Ether (ETH), the second-largest crypto, dipped 0.91% to trade at around $3,166 at the time of publication.

Other top-cap altcoins were also up, with Dogecoin (DOGE), the largest memecoin by market capitalization, soaring 23% over the last 24 hours and 151% in the past 30 days, reaching a multi-year high above $0.30.

Let’s look closer at the factors driving the crypto market up today.

Crypto market basks in Trump’s election victory

Bitcoin and other cryptocurrencies have seen remarkable gains since President-elect Donald Trump emerged as the winner in the 2024 US presidential race.

Trump had made bold promises about Bitcoin, even entertaining establishing a strategic national reserve. 

The broader crypto sector stands to benefit more from the crypto-friendly regulatory environment that Trump promises, including “a plan to ensure the United States will be the crypto capital of the planet.” 

With such an environment, market participants are optimistic that Bitcoin and other cryptocurrencies will trade significantly higher as a once oppressive headwind in the world’s largest economy now shifts to a tailwind. 

Additionally, the October print of the Consumer Price Index (CPI) and Producer Price Index (PPI), which are major macroeconomic events that traders are looking forward to this week, are key measures of inflation.

The US central bank is currently grappling with mixed signals but said it was convinced that inflation was “sustainably moving toward 2%” when they cut interest rates by 0.25% last week. 

More jobless claims data will come on Nov. 14, along with PPI and a speech by Fed Chair Jerome Powell on the economic outlook.

The latest data from CME Group’s FedWatch Tool sees 68.5% odds of another 0.25% cut coming at the Fed’s next meeting scheduled for Dec. 18.

Market volatility liquidates $630M

The rise in the prices of major cryptocurrencies resulted in significant liquidations across the crypto derivatives market over the past few days. Shorts were largely caught off guard, leading to a quick spat of leveraged liquidations.

In the past 24 hours, over $634 million in crypto positions have been liquidated across the crypto market, with $203 million wiped out in the last 12 hours. Short BTC leveraged positions totaling $121 million have also been liquidated on the day.

Over 210,940 traders were liquidated, with the largest single liquidation being BTC/USDT on the OKX crypto exchange, valued at $15.5 million.

Investors flock to crypto investment funds

The crypto market’s ongoing gains align with the huge capital flows into the crypto investment products. 

According to CoinShares’ “Digital Asset Fund Flows Weekly” report published on Nov. 11, institutional investors increased their exposure to digital assets, with crypto investment products seeing total inflows of $1.98 billion during the week ending Nov. 8. Once again, the lion’s share of movement was attributed to Bitcoin investment funds, which received $1.8 billion in inflows. The year-to-date inflows reached a new record of $31.3 billion.

CoinShares head of research James Butterfill attributed this to positive sentiment surrounding US presidential election outcomes and supportive macroeconomic conditions saying,

“A combination of a supportive macro environment and seismic shifts in the US political system being the likely reason for such supportive investor sentiment.”

In the meantime, SoSoValue reported approximately $1.6 billion flowed into spot Bitcoin ETFs over the Nov. 4 to Nov. 8 week. Approximately $1.4 billion flowed into these investment products on Nov. 7 alone.

The long-term trend for spot Bitcoin ETF flows remains on the rise, suggesting a significant surge in demand over the past 30 days, which positively impacts BTC prices.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.